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2005-7-5 06:37:00 p.m. HKT, XFNA
HK-listed Vitasoy yr to March profit up 6.9 pct despite lower NAmerican sales
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HONG KONG (XFN-ASIA) - Vitasoy International Holdings Ltd said it posted
a net profit of 123.75 mln hkd for the year to March, up 6.9 pct
year-on-year, even though its sales in North America fell by 5.6 pct.
Executive chairman Winston Lo Yau-lai attributed the decline in sales in
North America to the group's decision to get out of the refrigerated soymilk
business and a drop in demand for aseptic soymilk in that market.
However, the declines were cushioned by a 5 pct increase in tofu sales in
that market.
""In addition, rationalization efforts implemented in 2004/2005,
comprising the closure of the worn-out West Coast tofu plant and the exit
from the unprofitable refrigerated soymilk market, are expected to generate
annual savings of more than 10 mln hkd,"" he said.
The moves will also enable the group to achieve flexibility to increase
sales, narrow operating costs and achieve profitability, he said, adding that
operating losses in the US had been reduced.
He said total restructuring and other exit costs, incurred mainly in its
US operations, amounted to 25 mln hkd.
Consolidated sales rose 4.9 pct to 2.38 bln hkd from 2.27 bln, despite
stiffening competition in the Hong Kong and overseas markets.
""In view of intensifying competition in domestic and overseas markets,
challenges faced by the non-alcoholic beverage industry remained ... However,
driven by our successful implementation of customer-focused and
market-oriented business strategies, we have been able to achieve healthy
sales growth and rising productivity,"" he said.
Of total sales, 1.55 bln hkd was generated in Hong Kong, 156 mln hkd in
Australia and New Zealand and 133 mln hkd in China.
Lo did not provide the sales figures for the US.
The board of directors has proposed a final dividend of 5.7 HK cents.
(1 usd = 7.8 hkd)
jun.concepcion@xfn.com
jc/swp
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